Nash and CEO from Seglin article want to protect their companies, their mployees, their shareholders and their own income. In the case of RDCAR, first phase is recognition – raising ethical awareness is something that Desperate Air Corporation can implement in their organization. However, DAC have audit done on the property for sale six months ago and there was no red flags. Mr. Nash did reached out to lawyers of his firm who advised him that there is nothing in Florida law that states requirement of disclosure of hazardous substances on commercial property.
It is safe to say he did little bit of a discovery to make sure he is not breaking the law. It sounds to me like he did discovery stage in business law rather than business ethics. Something that law says it is right thing to do, it might not always be ethically correct decision. Also, German philosopher Emmanuel Kant states “Act as if the maxim of thy action were to become by thy will a universal law of nature”.
And what if every manager and every person acted like Mr. Nash, what would this world be like?
Would everyone Just think of themselves and their closest surroundings and the world would become a cruel place of living where no one Mr. Nash went through entire cognition phase mentioned in RDCAR model. He hasn’t read all of the information papers about ethical decisions in different business situations. I feel that by Mr. Williams’s rushed suggestion to close the sale without fully evaluating the decision of his VP of Real Estate, DAC doesn’t care too much about cognition anyways.
This might have influenced Mr.
Nash’s decision as well, while not having enough time to evaluate entire situation and learn the perception. Both Mr. Nash and CEO decision was based on short term profit decision. I don’t believe that people that will be living in the future retirements home crossed the mind of Mr. Nash, same as lives of passengers haven’t crossed the mind of the CEO. He hasn’t thought about elders getting possible diseases and illnesses from hazardous materials at the property, as well as anyone else who spends time with them as well as workers of the new retirement home.
If we look at the bigger picture what is the best for the society we have to look at Consequentialist Theory. Authors Trevino and Nelson of the textbook “Managing Business Ethics”, would say that Mr. Nash didn’t choose ethically correct decision based on consequentialist theory. The book states the best ethical decision is the one that yields the greatest net benefits for society, and the worst decision is the one that yields the greatest net harm for society’.
DAC might not get in trouble because most likely information about hazardous materials will not leak to Fledgling industries or the press, same as in the article “How to Make Tough Ethical Calls” by Jeffrey Seglin, the word about failed engine parts might not reach the press. If Fledgling finds out after the sale, there is a possibility of a lawsuit where DAC can definitely loose and unethical managers will definitely bring this firm o bankruptcy. I don’t think that Mr. Nash is proud by his actions of closing the sale and not disclosing information about the property.
In the “Action” phase of RDCAR, organization is supposed to recognize ethical achievements and negative unethical behaviors. Both Mr. Nash and CEO from the article “How to Make Tough Ethical Calls” made correct decision by business law but not ethically correct decision for the greater good. Mr. Nash might have asked himself some of the six questions that Michael Rion says in his book, The Responsible Manager: Practical Strategies for Ethical Decision Making also mentioned in the Seglin’s article: Why is this bothering me? Who else matters? Am I being true to myself? Mr.
Nash knows that this wasn’t a correct decision since he was bothered by it and also consulted his wife and prayed. The questions also include “What do others think” which is also referred in Treveno/ Nelson textbook what would readers of New York Times think. They wouldn’t agree with Mr. Nash’s decision in my opinion. As in the final phase of RDCAR, “Reflection” readers of New York Times would think that it seems as a lot of managers and CEOs ould make a good decision for their company and employees which is based on short term profits, but rarely correct ethical decision while considering everyone else that might be influenced.
This is why I would disclose the information about dangerous materials if I was in Mr. Nash’s situation. I couldn’t live with the fact that I was putting in danger lives of anyone that would be exposed to the radioactive materials. Also, I wouldn’t want to disappoint all of the current and future customers of Desperate Air Corporation. Even though Desperate Air is really desperate to make comeback and improve their financials, ethically correct decision would be to References: Dunfee et al.
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